Fluid Milk and Cream - Western U.S. Report 6

California milk production is increasing, as warm weather is helping to increase cow     comfort. Contacts report that milk production is below 2021 levels, but that higher milk     prices are encouraging some dairy farmers to work to increase production levels. Across all     Classes demand is holding steady. 

Farm level milk production in Arizona is steady to higher. Milk supplies are available for production, though some report that transportation delays are causing production facilities in the area to run below capacity. Staffing shortages are, reportedly, causing some bottling operations to run below capacity. Supplies of milk intended for these plants are being diverted to balancing plants. Demand for Class I is trending lower, while steady demand is present for Class II and III. 

In New Mexico, milk production is increasing. Milk supplies are available for production. Some producers are, reportedly, sending loads to other regions to help meet local Class I demand. Class I demand is steady to higher; Class II demand is unchanged. Milk production is trending higher in the Pacific Northwest. Contacts report that they are sending some loads of milk into Canada to meet local demand. Some production facilities in the area are running reduced schedules due to labor shortages and delayed deliveries of production supplies. Strong demand is present across all Classes. 

Farm level milk production in the mountain states of Idaho, Utah, and Colorado is increasing. Some producers in the area say that milk production is below forecasted levels. Labor shortages are causing some production facilities to run below capacity. Due to this, some contacts report buying loads of milk at a discount to Class IV. Demand for Class I is steady. 

Contracts for condensed skim are unchanged in the West. Some purchasers in the Midwest are, reportedly, looking to the West for available loads of condensed skim. Cream demand is steady, as inventories are available throughout the region. Contacts report that cream loads are facing delays due to a shortage of available truck drivers. Western cream multiples are unchanged at the top of the range, while the bottom has moved higher.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0200 - 1.2500